Friday, 27 June 2014

Gold volatile on concern about weak physical demand

Gold was marginlly changed in the Asian markets early Friday, but could be facing a volatile trading on concerns about weak physical demands on top of China's consumers and finding $ 15 billion of loans linked with the agreements fake gold in the country.

Chinese processing companies have used fake gold trades from 2012 to borrow 94.4 billion yuan ($ 15.2 billion) from banks, said the chief auditor of the country.

Gold was marginlly changed in the Asian markets early Friday, but could be facing a volatile trading on concerns about weak physical demands on top of China's consumers and finding $ 15 billion of loans linked with the agreements fake gold in the country.

Chinese processing companies have used fake gold trades from 2012 to borrow 94.4 billion yuan ($ 15.2 billion) from banks, said the chief auditor of the The majority of deals on commodity financing are legitimate, but disclosures false transactions based on the gold market, on the heels of suspected fraud in the metals financing Qingdao port, loans may encourage the authorities to launching another offensive against the financing of commodities.

Spot gold held steady at $ 1,317.76 an ounce by 0331 GMT, after losing 0.1 percent in the previous session.

"It's a wait and watch the status for now, but only if these agreements golden start to relax, there might be a reduction in imports, but not a steep decline," said a trader in Shanghai.

The imports of gold Hong Kong, China are already in the lower levels, with overseas purchases in May fell at its lowest level since January last year round as the rate of purchase of calms down after a record high 2013.

The Shanghai trader said that despite the recent weakness in demand, the global appetite for gold remains strong.

Demand from China has been quiet the last few months as a weaker yuan been blunted by the attractiveness of metal.

The demand from the main Indian consumers has also been undergone since the industry expected a prospective decline in rules on gold imports.

Gold may be also under pressure following comments by a official of the U.S. Federal Reserve that interest rates end of the first quarter of 2015 would be appropriate.

Meanwhile, the technical picture for gold, it positive in the near future, 100McxTips Trading Services analysts said.

"The technical profile reveals the chance of a short-term boost to the area of ​​$ 1.370 to 72" ANZ analysts said. "But this would be seen as a range of motion blur medium term, instead of an inversion of the downward trend."